Itemized Deduction – Page 4 – DougFreemanCPA.com

Vehicle-expense deduction ins and outs for individual taxpayers

It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through […]

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3 big TCJA changes affecting 2018 individual tax returns and beyond

Deductions, Income Tax, Individual Income Tax, Internal Revenue Service, Itemized Deduction, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) makes significant changes to personal exemptions, standard deductions and the child credit. The degree

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Investment interest expense is still deductible, but that doesn’t necessarily mean you’ll benefit

Capital Gains, Deductions, Investment, Investment Income Tax (NIIT), Itemized Deduction, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

As you likely know by now, the Tax Cuts and Jobs Act (TCJA) reduced or eliminated many deductions for individuals. One itemized deduction the TCJA kept intact is for investment interest expense. This is interest on debt used to buy assets held for investment, such as margin debt used to buy securities. But if you

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2 major tax law changes for individuals in 2019

2018 Tax Return, AGI (Adjustable Gross Income), Deductable Expenses, Deductions, Income Tax, Internal Revenue Service, Itemized Deduction, Medical Deductions, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

While most provisions of the Tax Cuts and Jobs Act (TCJA) went into effect in 2018 and either apply through 2025 or are permanent, there are two major changes under the act for 2019. Here’s a closer look. 1. Medical expense deduction threshold. With rising health care costs, claiming whatever tax breaks related to health

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Check deductibility before making year-end charitable gifts

Charitable, Donations, Income Tax, Individual Income Tax, Internal Revenue Service, Itemized Deduction, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

As the holidays approach and the year draws to a close, many taxpayers make charitable gifts — both in the spirit of the season and as a year-end tax planning strategy. But with the tax law changes that go into effect in 2018 and the many rules that apply to the charitable deduction, it’s a

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Does prepaying property taxes make sense anymore?

Deductable Expenses, Income Tax, Individual Income Tax, Internal Revenue Service, Itemized Deduction, Property Tax, SALT, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning / Douglas Freeman

Prepaying property taxes related to the current year but due the following year has long been one of the most popular and effective year-end tax-planning strategies. But does it still make sense in 2018? The answer, for some people, is yes — accelerating this expense will increase their itemized deductions, reducing their tax bills. But

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Donate appreciated stock for twice the tax benefits

Charitable, Donations, Federal Income Tax, Income Tax, Individual Income Tax, Internal Revenue Service, Investment, Investment Income Tax (NIIT), Itemized Deduction, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

A tried-and-true year-end tax strategy is to make charitable donations. As long as you itemize and your gift qualifies, you can claim a charitable deduction. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? 2 benefits from 1 gift. Appreciated publicly traded stock

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Could “bunching” medical expenses into 2018 save you tax?

Flexable Spending Accounts, Health Care, Itemized Deduction, Medical Deductions, Tax Deduction, Tax Planning, Uncategorized / Douglas Freeman

Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into

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Now’s the time to review your business expenses

Business Income Tax, Business Travel Deductions, Business Travel Expense, Compensation and Benefits, Deductable Expenses, Employee Benefits, Income Tax, Internal Revenue Service, Itemized Deduction, Small Business, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning / Douglas Freeman

As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether your business would benefit from accelerating certain expenses into this year. Be sure to evaluate the impact of the Tax Cuts and Jobs Act (TCJA), which reduces or eliminates many

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Charitable IRA rollovers may be especially beneficial in 2018

Charitable, Donations, Individual Income Tax, IRA, Itemized Deduction, Retirement, Tax, Tax Cuts and Job Acts (TCJA), Tax Savings / Douglas Freeman

If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions. This break may be especially beneficial now because of Tax Cuts and Jobs Act (TCJA) changes that affect who can benefit from the

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